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SunPower (SPWR) Q1 Loss Narrower than Expected, Sales Beat

Zacks Equity Research

SunPower Corp. SPWR reported first-quarter 2017 loss of 42 cents per share, narrower than the Zacks Consensus Estimate of loss of 66 cents. In the year-ago period, the company had posted loss of 42 cents.

Adjustments were related to the sale of projects to 8point3 Energy Partners CAFD – a holding company formed in 2015 – along with First Solar, Inc. FSLR, sale-leaseback transactions, utility and power plant projects, stock-based compensation, amortization of intangible assets, restructuring expenses, cost of above-market polysilicon, tax effect and other adjustment costs.

On a GAAP basis, the company incurred a loss of 97 cents per share, wider than the year-ago GAAP loss of 62 cents.

Operational Results

During the quarter, SunPower garnered revenues of $429.5 million that surpassed the Zacks Consensus Estimate of $391 million by 9.8%. However, reported revenues declined 1% from the year-ago figure of $433.6 million.

Total operating expenses were down 25.2% to $97.7 million, owing to lower research and development and selling, general and administrative expenses in the first quarter.

SunPower Corporation Price, Consensus and EPS Surprise

SunPower Corporation Price, Consensus and EPS Surprise | SunPower Corporation Quote

Financial Position

SunPower had cash and cash equivalents of $387.4 million as of Apr 2, 2017 compared with $425.3 million as of Jan 1, 2017. Long-term debt increased to $501.3 million from $451.2 million at 2016 end.

In the first quarter, net cash outflow was $126.9 million from operating activities compared with outflow of $369.9 million in the year-ago period.


On a non-GAAP basis, the company expects revenues in the range of $275–$325 billion for the second quarter and $2.1–$2.6 billion for 2017. Gross margin is estimated to be in 2–4% band for the second quarter.

SunPower expects to deploy 330–360 megawatts (“MW”) in the first quarter and 1.3–1.6 gigawatts (“GW”) in 2017.

An Upcoming Peer Release

Canadian Solar, Inc. CSIQ is scheduled to release first-quarter 2017 results on Jun 6.

Zacks Rank

Currently, SunPower has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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First Solar, Inc. (FSLR): Free Stock Analysis Report
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8point3 Energy Partners LP (CAFD): Free Stock Analysis Report
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